
Why Build an ADU in San Jose, California?
San Jose homeowners can now build ADUs with unprecedented flexibility, including the option to sell them as separate condominiums. As the heart of Silicon Valley, San Jose's ADUs command premium rents from tech workers while offering unique investment opportunities. With pre-approved plans and streamlined permitting, building an ADU has never been more accessible or profitable.
If you're not familiar with what an Accessory Dwelling Unit (ADU) is, it is a secondary housing unit on the same property as a primary residence, often used for rentals, guest accommodations, or extra family living space. Commonly called granny flats, backyard cottages, or in-law suites, ADUs offer homeowners flexible housing options, additional income potential, and increased property value. As cities like San Jose continue to seek solutions for housing shortages, ADUs have become a practical and popular choice.
Read our ADU guidesSan Jose ADU Market Insights
San Jose leads California in ADU innovation, first to allow condominium sales. Tech worker demand drives rentals 40% above state average. City offers 20+ pre-approved ADU plans for faster permitting. Properties near future BART stations qualify for development bonuses. Average two-bedroom ADU rents for $3,500-4,000 monthly.
- 35-45% average property value increase for San Jose homes with ADUs
- $1,800-$4,000+ monthly rental income potential in San Jose's strong rental market
- $400-$1,250 per sq ft average construction costs in San Jose
Complete Guide to San Jose ADU Regulations
(2025 Updated)
San Jose pioneered progressive ADU policies that maximize homeowner opportunities. As the first California city allowing ADU condo sales, San Jose offers unmatched flexibility for property investment.
What You Can Build on Your San Jose Property
San Jose's ADU ordinance allows remarkable flexibility for homeowners:
800 sq ft on any lot size
1,000 sq ft on lots over 9,000 sq ft
1,200 sq ft on lots over 15,000 sq ft
4 feet from side and rear property lines
6 feet between ADU and main house
No setback for garage conversions
Special allowances in planned development zones
16 feet for single-story detached ADUs
18 feet within 0.5 miles of transit
25 feet for attached ADUs
No parking within 0.5 miles of light rail or bus rapid transit
One uncovered space otherwise (tandem allowed),
No replacement parking for garage conversions
Best Neighborhoods for ADUs in San Jose
San Jose's neighborhoods reflect Silicon Valley's dynamic growth, with ADU opportunities ranging from established areas to emerging tech corridors.
Willow Glen
Tree-lined streets
Walkable downtown
$2,500-3,500/month rentals
Historic charm attracts young professionals
West San Jose
Near Apple campus
Excellent schools
$3,000-4,000/month rentals
Larger lots for spacious ADUs
Berryessa
Future BART station
Diverse community
$2,000-3,000/month rentals
Value appreciation potential
Rose Garden
Historic prestige
Near downtown and Caltrain
$2,800-3,800/month rentals
Professional tenant base